True and False Questions: 1. Economic interest maximization and risk aversion are two characteristics of an economic man 2. Maslow's theory of the hierarchy of needs believes that man are resourceful evaluator and maximizer 3. Firm is a coalition of economic men. 4. The economic nature of man gives rise to the emerge of accounting

1.1 System Fundamentals Definitions System: Definitions System- integrity of elements that form a certain structure internally and perform certain functions externally. L von Bertalanffy: System --set of interrelated elements

1. Model of Communication System Noise Source Sink T Channel T: Transformation Source, sink, and channel are given beforehand Transformation to match the source with the channel

1. Information Processing Definition of Information processing All operations exerted to the information itself for its better utilization Information processing is necessary because most of the information in its original form may not be good for use. Thus information processing is the basis of later operations Two categories of information processing: 1)Shallow Level of Information Processing 2)Deeper level of Information Processing

3-1 Measures of Random Syntactic Information Shannon Theory of Information Key point: 1. Information is something that can be used to remove uncertainty. 2. The amount of information can then be measured by the amount of uncertainty it removed. 3. In the cases of communications, only waveform is concerned while meaning and value are ignored. 4. Uncertainty and thus information are statistic in nature and statistical mathematics is enough

Introduction Signaling games are used to model the following situation: Player 1, the Sender, receives some private information and sends a message m E M to Player 2, the Receiver. The latter, in turn, observes m but not 0, and chooses response r E R. Players'payoffs depend on 0, m and r. What could be simpler? Yet, there is a huge number of economically interesting games that fit nicely within this framework: Spence's job market signaling model is the leading example, but applications abound in IO (limit pricing, disclosure...) finance (security design) and political economics

Introduction Nash equilibrium has undoubtedly proved to be the most influential idea in game theory. enabled fundamental breakthroughs in economics and the social sciences. Its development was a major intellectual achievement; what is perhaps more important, it Recent foundational research has emphasized the subtleties in the interpretation of Nash

Introduction By and large, I will follow OR, Chap. 8, so I will keep these notes to a minimum. ] The theory of repeated games is a double-edged sword. On one hand, it indicates how payoff profiles that are not consistent with Nash equilibrium in a simultaneous-move game might be achieved when the latter is played repeatedly, in a manner consistent with Nash or even subgame-perfect equilibrium On the other hand, it shows that essentially every individually rational payoff profile can

Logistics We(provisionally) meet on Tuesdays and Thursdays 10: 40a-12: 10p, in Bendheim 317. I will create a mailing list for the course. Therefore please send me email at your earliest convenience so I can add you to the list. You do not want to miss important announcements, do you? the course has a web page at http://www.princeton.edw

Discrepancies between theory and practice in Deformation. 1. Morphology of the surface in deformation. 2. The great difference between theoretical and actual strength of single crystals (. >>)